Labour law for termination of employment in UAE is a legal framework that ensures fairness and clarity for employees and employers.
The UAE’s Labour Law, primarily outlined in Federal Decree-Law No. 33 of 2021 and its amendments, stipulates various rules surrounding terminating employment contracts.
This includes notice periods, valid reasons for termination, and end-of-service benefits.
This article overviews the key provisions of UAE Labour Law concerning employment termination, providing practical insights for employees and employers for 2024.
Contact Al Mulla Labor Lawyer in Dubai. Click the WhatsApp icon below or go to the Contact Us page. Locations: Dubai, Abu Dhabi and Ras Al Khaimah.
Table of Contents
Overview of Labour Law for Termination of Employment in UAE
Termination of employment in the UAE is governed by Federal Decree-Law No. 33 of 2021 and its subsequent amendments, ensuring that both employees and employers adhere to defined regulations.
Employment can be terminated by mutual agreement, at the expiry of the contract, or for valid reasons specified by law.
Notice Periods and Employee Rights
A key aspect of employment termination is the notice period. For contracts with a service length of less than five years, the notice period is 30 days.
For those with more than five years, it extends to 60 days; for more than ten years, it can be up to 90 days.
During this period, the employee is entitled to full salary and must continue performing their duties unless exceptions are made by mutual agreement.
If either party fails to provide notice, compensation equivalent to the salary for the notice period is required.
Employers must provide written notice and valid reasons for early terminations, such as poor performance or misconduct.
Immediate termination is possible without notice for serious misconduct, such as theft or physical assault.
Employees, in turn, can terminate without notice if the employer violates contractual obligations, such as failing to provide a safe working environment.
End-of-Service Benefits
Employees who have served for more than a year are entitled to end-of-service gratuity, calculated based on the length of service and their last basic salary.
Employees dismissed for gross misconduct may forfeit this gratuity. Health insurance typically ends upon termination, although some contracts may specify post-termination coverage.
Unlawful Termination in UAE
Unlawful termination, such as dismissing an employee for filing a complaint, is prohibited. Employees terminated unlawfully can seek compensation equivalent to three months’ salary.
The Ministry of Human Resources and Emiratization (MOHRE) can mediate such disputes, and unresolved cases can be referred to court for compensation.
We recommend you read about Employee rights in termination in UAE Dubai and about Negotiating wrongful termination settlement.
Also, learn about Termination employment for redundancy in the UAE.
Legal Services for Employment Termination in UAE
Al Mulla Lawyers & Legal Consultants specialize in labor law, particularly employment termination cases.
They provide expert legal advice and representation in disputes involving unfair dismissal, arbitrary termination, and breaches of employment contracts. Their services include:
- Employment Dispute Resolution: Representing employees and employers in disputes over unlawful termination, ensuring compliance with UAE labor laws.
- End-of-Service Benefits: Advising on calculating and securing end-of-service gratuity and other financial entitlements.
- Contractual Obligations: Guiding termination clauses, notice periods, and related compensation as per UAE laws.
- Arbitration and Litigation: Handling cases of wrongful dismissal or termination disputes, assisting clients through MOHRE mediation or the UAE court system.
Al Mulla Lawyers offer comprehensive assistance for legal issues for employment termination matters, ensuring clients are protected and compliant with UAE labour regulations.
FAQs about Labour termination in UAE
Conclusion.
Understanding Labour law for termination of employment in UAE is essential for employees and employers to ensure compliance and protect rights.
Clear guidelines on notice periods, valid reasons for termination, and end-of-service benefits structure the process. Seeking legal advice can be crucial to avoid disputes or claims of unlawful termination.
Al Mulla Lawyers & Legal Consultants offer expert legal services, specializing in employment disputes, wrongful termination, and contract-related matters.
Their guidance ensures that both employers and employees navigate the termination process smoothly and in accordance with UAE law.
Contact Al Mulla Lawyers today! Click the Whatsapp icon below or visit our Contact Us page.
Find us at these locations:
– Dubai: Deira, Port Saeed, Street 8, City Avenue Building, Office 705-708.
– Abu Dhabi: Corniche Street, Golden Tower, Office 22.
– Ras Al Khaimah: Al Nakheel, Al Maamoura Building (Emirates NBD Bank Building), Fourth Floor.
A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.